US Ashland asset sales likely to be accelerated – analyst

NEW YORK (ICIS)--US-based chemical producer Ashland is likely to accelerate potential asset sales following an activist investor taking a stake in the company, one Wall Street analyst said on Monday.

“We believe last week’s 13D filing by a well-known activist will accelerate what was likely already to occur at Ashland over the next 12-24 months: the sale of Water Technologies and Performance Materials, and the tax-efficient spin[-off] of Valvoline,” said Deutsche Bank analyst David Begleiter in a research note.

On 11 April, activist investment firm JANA Partners disclosed in a 13D filing with the US Securities and Exchange Commission that it had acquired a 7.4% stake in publicly traded Ashland.

In the filing, JANA said it has had discussions with Ashland’s management regarding corporate structure, strategy and future plans, among other items.

JANA said it plans to continue having these discussions and “may take other steps seeking to bring about changes to increase shareholder value."